Esprit’s first-half results have fallen as expected, but the company promises a stronger second half..
The troubled retailer reported on Monday that its revenue for the six months ended June 30 fell by 10.2% to HK$3.8 billion (US$485.2 million), while its gross profit dropped by 15.2% to HK$1.6 billion. The company’s net loss widened to HK$285 million from HK$236 million a year earlier..
Esprit said that the first-half decline was in line with expectations, as it continues to implement its turnaround plan. The company has been struggling in recent years due to a number of factors, including increased competition from online retailers and fast-fashion brands..
In an effort to revive its fortunes, Esprit has been closing stores, cutting costs, and revamping its product offering. The company is also focusing on expanding its online presence..
Esprit said that it is starting to see some positive results from its turnaround plan. In the second quarter, the company’s revenue fell by a smaller amount than in the first quarter. The company also said that its gross profit margin improved in the second quarter..
Esprit said that it is confident that it can deliver a stronger second half. The company is expecting to benefit from a number of factors, including the launch of new products, the opening of new stores, and the expansion of its online business..
Analysts are cautiously optimistic about Esprit’s prospects. They believe that the company is making progress with its turnaround plan, but they also caution that it will take time for the company to return to profitability..
Esprit shares rose by 2.5% in Hong Kong on Monday following the release of the results. The shares are still down by more than 50% over the past year..
